Finding Text
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, Department of Housing and Urban Development, Community Development Block Grants and ALN 21.027, Department of the Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - B24MC260070 2025 and CW 5912A 2026 2021 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR Section 200.510(b), cities and other non federal entities must create a Schedule of Expenditures of Federal Awards (SEFA) if they expend more than $1 million in federal awards during their fiscal year. Condition - The City did not accurately prepare a SEFA that included all federal expenditures in fiscal year 2025, which resulted in a increase of approximately $7.6 million. Questioned Costs - N/A If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - The City did not accurately prepare a SEFA based on the activity for the year ended June 30, 2025. Cause and Effect - Improper recognition of federal awards which includes the grant agreement periods and the amount of expenditures originally provided created issues with the amounts reported to the auditors and led to the correction of the SEFA by an amount of $7.6 million from the amounts that were originally provided. Recommendation - The City should assign an individual to prepare the SEFA, along with another individual to approve it to ensure that it is properly recorded. Views of Responsible Officials and Planned Corrective Actions - The City will ensure that all future expenditures of federal awards are included on the SEFA by assigned staff to prepare and review the SEFA and track the amounts throughout the year.